DOJA Archives - Green Market Report

StaffStaffMarch 7, 2018
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This is your quick hit of news for March 7, 2018.

Marapharm Ventures Inc.

Marapharm Ventures (MRPHF)  gave a progress report on its Washington facility. The copany said that the rehabilitation of the cultivation site will be completed by the end of March.

“During the renovation, we have worked closely with our architect and engineering partners to design one of the most advanced and environmentally friendly cannabis cultivation sites in North America. To operate in the Pacific Northwest climate the 28,000 sq. ft building has a new silicone membrane roof and the interior has been insulated with expanding, closed cell foam. Our flagship tenant AlphaPheno Inc., a tier 3 producer and processor will be able to cultivate 30,000 sq. ft of plant canopy, the maximum allowed by the license, in just 28,000 sq. ft of floor space with minimal water, power, and waste.”

“These engineered solutions will produce higher quality cannabis with the lowest cost of production compared to conventional indoor cultivators and shorten our return on investment timeline.” Kurt Keating, Director of Operations.

Future Farm Technologies Inc.

Future Farm Technologies (FFRMF) announced that its Puerto Rico subsidiary has signed the first of five planned leases for its Clinica Verde branded Puerto Rico dispensaries. Future Farm expects to sign two more leases in the next thirty days with the additional two leases to follow soon after. The Future Farm Clinica Verde branded dispensary is located in the Condado neighborhood of San Juan, one of the island’s most highly trafficked areas.

EVIO, Inc.

EVIO (EVIO), reported that it had recently invested $800,000 in new equipment upgrades at its EVIO Labs Massachusetts facility and its EVIO Labs Colorado licensee. According to senior management, these equipment upgrades will significantly increase testing volumes to meet increased demand and testing requirements, leading to improved operating efficiencies and revenue growth.

EVIO currently operates 9 cannabis testing laboratories in five states, a coast-to-coast footprint that continues to keep pace with the cannabis testing market, one of the most attractive and investment-friendly segments of the overall legal marijuana industry- a space that has exploded onto the investment scene over the last few years, and continues on a rapid growth trajectory.

Hiku Brands Company Ltd.

Hiku Brands Company  (CSE:HIKU) gave an update on the its recent corporate development initiatives. Hiku’s wholly-owned subsidiary DOJA Cannabis Ltd. submitted its application to Health Canada for the production of medical cannabis oils at its second site facility located in Kelowna, British Columbia. Hiku also announced it signed a strategic partnership agreement with Vitalis Extraction Technology Inc.  where Vitalis will advise on the build-out of DOJA’s extraction lab, partner on certain research and development initiatives, and supply the FUTURE LAB with Vitalis’ Q-90 supercritical CO2 extraction system – which is capable of processing up to 80 kg of cannabis flower per day into ultra-pure, exceptionally-clean, high-quality cannabis oils without the use of any toxic solvents.

Sugarmade Inc.

Hydroponic company Sugarmade (SGMD) announced the completion of internal financial system enhancements in order to begin recognizing revenues from its master marketing agreement with BizRight Hydroponics, Inc. Additionally, Sugarmade announced the completion of its year-end audit in preparation for its year-end, and other, financial filings and its intent to soon offer formal revenue growth guidance for year-end 2018 and 2019.

For the past few months, the staff at Sugarmade has been implementing a plan to significantly increase corporate accounting and financial resources to manage the over 400% revenue growth planned for the next few years. With these functions largely completed, the company’s staff is now beginning testing on live orders and revenue flows from BizRight products, in order to begin recognizing these new revenue streams.


Debra BorchardtDebra BorchardtDecember 21, 2017
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Cannabis Company Limited known as DOJA Cannabis (DJACF)  is merging with TS Brandco Holdings, known as Tokyo Smoke as DOJA buys all of TS Brandco’s outstanding and issued shares. The combined company will be known as Hiku Brands Company Ltd. and will house the cannabis brands of DOJA, Tokyo Smoke, and Van der Pop.

As part of the agreement, Aphria (APHQF) has committed to making a $10 million strategic equity investment into the new company Hiku and the parties have agreed to a supply agreement for Hiku’s brands. As a result of this deal, Hiku will be hitting the market with a solid $31 million in cash.

The Retail Push

Both DOJA and Tokyo Smoke have been positioning themselves as lifestyle brands. This deal will now allow the companies to sell exclusive products in their own retail locations. According to the company statement, “Hiku will have seven operational, legal cannabis accessory stores with locations across Canada (Ontario, Alberta and British Columbia). Hiku will prioritize retail expansion in provinces allowing private cannabis retail and Tokyo Smoke and DOJA will respond to the Government of Manitoba’s Request for Proposals to establish retail cannabis stores throughout the province.” The Hiku team brings with it a strong traditional retail experience with the founder of SAXX Underwear and a $100 million+ business at Google.

Management Commentary

“We have created the leading brand house in Cannabis,” said Trent Kitsch, CEO of DOJA. ” Where high quality and design will shape the Cannabis Future. I am confident Hiku will be trusted by consumers to design better customer experiences and products, resulting in greater market share. Tokyo Smoke’s experienced management team has proven its ability to build and acquire respected cannabis brands and create brand awareness in a difficult-to-navigate regulatory environment. The combination of cannabis production, retail footprint, and a portfolio of cannabis brands gives us the opportunity to realize the significant value of complete vertical integration.”

“This strategic investment in and supply agreement with Hiku further bolsters our relationship with Tokyo Smoke and now DOJA, and reaffirms our commitment to expanding our product offering ahead of the recreational market,” said Vic Neufeld, Chief Executive Officer of Aphria. “This transaction has the twofold benefit of providing us access to strong brands, through Tokyo Smoke and DOJA, and craft-cultivated British Columbia bud, through DOJA. Quality product and recognizable consumer brands will be key differentiators for patients and consumers, and we’re looking forward to continuing our work with Hiku to create premium cannabis brands in Canada.”

Deal Terms

 DOJA will acquire all of the outstanding Tokyo Smoke Shares in exchange for shares of DOJA. Based upon the number of Tokyo Smoke Shares outstanding as at December 21, 2017, if the Merger is completed, DOJA will issue approximately 55.6 million DOJA Shares to the shareholders of Tokyo Smoke in exchange for their Tokyo Smoke Shares. DOJA shares were lately trading at $1.11 on the OTC Marketplace.

Aphria, along with Uji Capital known as the strategic investors have entered into binding agreements to acquire from DOJA 8,992,805 subscription receipts of DOJA at a purchase price of $1.39 per receipt, equivalent to DOJA’s five-day volume weighted share price, for aggregate gross proceeds of $12.5 million.


StaffStaffDecember 7, 2017
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DOJA Cannabis Company (CSE: DOJA) announced a C$15 million bought deal private placement of convertible debenture units with Canaccord Genuity as the lead underwriter on behalf of a syndicate of underwriters. The underwriters agreed to purchase 15,000 units of the company priced at $1,000 per unit and the deal is expected to close on or about December 28, 2017.

DOJA is a premium cannabis lifestyle brand that grows high-quality handcrafted flower. The company was founded by the team that started SAXX Underwear. Each convertible debenture will be convertible into common shares at C$1.24 per share for three years following the closing date. The stock was lately trading at C$1.25. The debentures bear an interest rate of 8% per year. The company intends to use the proceed for capital projects and general corporate purposes.

In October, DOJA said it was buying a 22,580 square foot building in Kelowna, British Columbia. The completion of the new facility called “Future Lab” will bring the company’s production capacity to 5,000 kg. per year. It is expected to be ready for its first cultivation prior to July 2018.

Canaccord Leads Deal For Delta 9

Delta 9 Cannabis Inc. (TSXV: NINE) announced that it was also doing a deal with led by Canaccord Genuity for C$20 million. 7,410,000 units at a price of C$2.70 will make up the bought deal with an option for an additional 1,111,500 units at a price of C$2.70. The stock was lately trading at C$2.73.  The proceeds will be used for expansion capital expenditures and general corporate purposes. It, too, is expected to close December 28, 2017.

Delta 9 Cannabis owns Delta 9 Bio-Tech, a licensed producer of medical marijuana in Canada and operates an 80,000 square foot facility in Winnipeg, Manitoba. The company is focused on small batch, hand trimmed medical cannabis. Just a few weeks ago, Canopy Growth announced that it entered into a distribution agreement with Delta to offer their products through the CraftGrow line via Tweed Main Street’s online store.



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